According to CryptoQuant CEO Ki Young Ju, institutional demand for Bitcoin remains robust. An analysis of U.S. custodial wallets reveals a significant accumulation of Bitcoin by institutions over the past year. These wallets, which typically hold between 100 and 1,000 BTC, have seen a net increase of approximately 577,000 BTC. At current prices, this accumulation is valued at roughly $53 billion, highlighting the strong capital inflows from institutional investors.
CryptoQuant's analysis methodology focuses on U.S. custody wallets, excluding those belonging to cryptocurrency exchanges and mining operations to ensure accuracy. The inclusion of spot Bitcoin exchange-traded funds (ETFs) in the data provides a comprehensive view of institutional participation. By monitoring net inflows rather than gross movements, the analysis captures new institutional capital entering the Bitcoin ecosystem, reflecting long-term investment strategies. Institutional addresses often exhibit different behavioral patterns compared to retail investors, demonstrating greater holding consistency during market fluctuations. This behavior suggests that institutions view Bitcoin as a strategic asset rather than a speculative instrument.
However, a recent CryptoQuant research report points out that demand growth has slowed since early October 2025. The report suggests that the bulk of incremental demand in the current cycle may have already been realized. Additionally, U.S. spot Bitcoin ETFs experienced net selling in Q4 2025, with holdings declining by 24,000 BTC, a sharp contrast to the strong accumulation observed in Q4 2024. Addresses holding 100–1K BTC, representing ETFs and treasury companies, are growing below trend, echoing the demand deterioration seen at the end of 2021.
Furthermore, on-chain data indicates that large Bitcoin investors are not buying the dip, once exchange addresses are excluded. Addresses holding 1,000–10,000 BTC have reduced their balances, marking the fastest decline since 2023. This decline mirrors the distribution phase seen in 2021–2022. Claims of renewed whale accumulation are often driven by exchange wallet activity rather than genuine investor demand.
Despite these signs of slowing demand, annual BTC holdings growth for the 100–1K BTC balance address cohort remains positive. This cohort added 681,000 BTC in 2025, confirming institutional dominance. The annual growth rate of Dolphin's holdings also remains positive, suggesting the bull cycle is not yet over. However, short-term momentum has weakened, and renewed accumulation is needed for Bitcoin to retest and surpass $126,000.
Overall, while institutional demand for Bitcoin has been strong, there are indications that this demand may be weakening. Investors should closely monitor on-chain data and market trends to assess the future trajectory of institutional involvement in the Bitcoin market.
